The Finance Ministry has approved an allocation exceeding ₹1 lakh crore for the second phase of the India Semiconductor Mission (ISM 2.0), according to sources reported by CNBC-TV18.
After this approval, the government is expected to present a Cabinet note shortly for final consent. The proposal is anticipated to be reviewed by the Cabinet for consideration before the month’s end, sources indicated.
ISM 2.0 aims to enhance India’s semiconductor ecosystem by emphasizing research & development (R&D), design, and innovation. The initiative is also set to provide incentives for the creation of advanced semiconductor nodes, including 3nm and 2nm technologies.
This initiative builds upon the first phase of the India Semiconductor Mission, which had a financial outlay of ₹76,000 crore. Under Phase 1, the government sanctioned 10 projects, drawing in a total investment of about ₹1.60 lakh crore.
This renewed effort comes as India seeks to strengthen its position in the global semiconductor value chain and reduce reliance on imports amid increasing geopolitical and supply chain challenges.
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